CLH signs an agreement with HST to build and manage a new storage facility for oil products in Mexico

CLH has signed an agreement with the Mexican company HST to acquire 60% of the capital of this company, with the aim of developing the project for the construction and operation of a new facility for the storage of oil products located in the metropolitan area of the Valle de México.

The new facility will launch its operations in 2020 with a capacity of almost 100,000 cubic metres and is strategically positioned with excellent connections to the oil pipeline system, railways and motorways in one of the areas with the highest level of consumption of oil products in all of Mexico.

The President of the CLH Group, José Luis López de Silanes, has highlighted that “this operation constitutes a new step forward in the company’s process of internationalisation and one which enables us to continue to move forward in the American continent, following the contract secured last year in Panama for the supply of fuel to five airports in that country”.

The Chief Executive Officer, Jorge Lanza, emphasised the “enormous potential involved in the development of logistics infrastructure in Mexico and the highly complementary nature of the skills shared by CLH and HST, combining the international experience that CLH has in operating pipelines and storage terminals in Europe – involving almost 10 million cubic metres – together with the important preparation that the HST team can contribute to the development of projects in Mexico”.

In addition to this, the General Manager of HST, Edgar Gutiérrez, announced that this partnership represented the consolidation of a long project and confirmed that “we are extremely happy with the added value and the level of experience that CLH can contribute to our society. I am convinced that this is a decisive step forward towards boosting the trust of our clients and continuing to undertake further projects in this emerging market in Mexico”.

With this new project, the CLH Group launches its fifth international operation, following the projects that are already underway in the United Kingdom, Ireland, Oman and Panama. The emerging opportunities for the development of infrastructure in Mexico are strengthened by the liberalisation process of the energy sector and the growing level of consumption that the country is experiencing.

About the CLH Group

The CLH Group is the Spanish market leader in the transportation and storage of oil products, and it is also the second most significant logistics operator in Europe in terms of the breadth of its network of pipelines and its storage capacity.

The CLH Group has more than 90 years of experience as an operator of logistics infrastructure for the transportation and storage of oil products, working mainly with oil pipelines, terminals and airport infrastructure.

The services provided by CLH encompass the entire life cycle of logistics actions, including their design, development, construction, financing, operation and maintenance.

In Spain, the CLH Group manages a network of oil pipelines measuring over 4,000 kilometres in length in addition to 40 storage facilities with a capacity of 8 million cubic metres, as well as 28 airport facilities located in key airports such as Madrid, Barcelona, Palma de Mallorca and Málaga.

On an international level, the company is rolling out an ambitious expansion plan and already has a presence in five countries outside of Spain: United Kingdom, Ireland, Oman, Panama and Mexico.

In the United Kingdom the company manages a network of pipelines measuring 2,000 kilometres, the largest of its kind in the country, in addition to 15 storage facilities.

In Oman it has worked in partnership with Orpic to build and manage a network of pipelines and a storage facility.

In Ireland, CLH Aviación manages the fuel storage terminal at Dublin Airport and is currently expanding this infrastructure and bringing it up to date.

In Panama, CLH Aviación is due to commence operation of the airport fuel supply facilities in five airports in the country, including Tocumen International Airport, one of the most important airports in the Americas.

About HST

HST is a 100% Mexican company founded by five members with extensive experience in railway logistics, the management of hazardous products, project development, petrochemical construction and the development of business models.

Since its founding, HST has been successful in positioning itself as one of the leading companies in the development of storage infrastructure projects in Mexico. 

Among its many successes, it was the first company to be granted permission to connect to the network of pipelines in the country, and the third to be granted permission for the construction of a national storage terminal.

It has also been the first company to secure permission for the construction of a storage terminal in the Valle de México, which is the area of the country with the highest consumption of hydrocarbons.

Furthermore, HST has made an active participation in the development of public storage policy together with the Ministry of Energy and it has participated in the Puerto de Veracruz tender for the development of a hydrocarbon terminal in the area, in addition to collaborating in the first Pemex open season for the contracting of storage terminals for its products.

HST plans to undertake more national projects, backed by the knowledge that this company has acquired of the Mexican energy market and the high level of industrial and business experience held by its members.